Maintenance and Repairs

January 6, 2025 Published by British Columbia Chapter - By Paul Murcutt

Water Damage is the New “Fire”: What Can Strata Councils and Owners Do to Turn the Tide on Costly Residential Water Damage?

From CCI BC Strata Connection Magazine, Volume 03, Fall/Winter 2024

The problem of residential water damage is becoming more widespread and a serious challenge for insurers and owners alike. In fact, water-based insurance claims total around 60%of total residential losses, and the average water damage claim in 2024 is more than $70,000. Water is now considered the new “fire.” 

And the consequences can be serious. Terms like “Niagara Falls” are being used by news media to describe the scope and scale of high-profile instances of water damage. These metaphors are quite accurate when you consider that a 6-inch water pipe with a line pressure of 60 pounds per square inch with a 3 mm crack can spray 24.5 litres of water per second. Within 30 minutes that could mean as much as 44,157 litres of water have escaped, which is enough to fill two 33 foot above ground swimming pools! 

In one case in Vancouver’s luxurious downtown waterfront, a gasket broke on the 29thfloor of a recently built condo tower and water flooded down into 17 units below, submerging the underground parking lot, and putting three elevators out of service. Although crews were on scene within 30 minutes of the incident starting, the damage was already done. Repairs were costly and took a month to complete and similar gaskets had to be replaced with more robust, improved models. 

Taller buildings are more vulnerable to water damage since they need to have booster pumps and high-pressure lines to deliver municipal water, which can normally only reach seven storeys, to higher floors. If there is a break or a failure of a gasket, then the consequences of this pressurized water can be disastrous. 

But failed gaskets and valves aren’t the only source of this damage and the resulting claims. The average condo unit has ten individual water connections. This offers a wide range of sources for leakages and include pin-hole leaks in copper or plastic piping, plugged condensate drains on water-source heat-pumps, sprinklers “spontaneously” discharging, freezing of exterior hoses and pipes, hot water tanks, rubber washing machine hoses, broken toilets and bathroom fittings including shower lines inside walls, and malicious activation of hose stations.

These instances of water damage can create costly losses, rising deductibles, and higher insurance premiums. Insurance companies increasingly want to see proactive action from councils to combat water damage in their communities and have recently turned their attention to properties that install water detection and shut off valves. We are now starting to see incentive programs enter the marketplace that provide premium incentives for properties that install such devices. Finally, a proactive approach to preventing claims is being rewarded. 

Benefits of Water and Leak Detection:

1. Damage Prevention and Mitigation:

Early detection of leaks can prevent significant water damage to property, reducing repair costs and minimizing disruption. 

2. Cost Savings:

Catching leaks early will avoid costly repairs from extensive water damage.

3. Preserving Property Value:

Properties equipped with water leak detection systems are often more attractive to buyers and tenants, as they offer added protection and peace of mind. 3. Insurance Benefits Many insurance companies offer discounts on premiums for properties with installed water leak detection systems, as they reduce the risk of costly claims.

4. Convenience

Modern water leak detection systems can send real-time alerts to your mobile device, allowing you to address issues promptly, even when you are not at home.

By incorporating a water and leak detection system into individual units, properties and owners can reduce the potential for water damage. However, even with these preventative measures, water incidents can still happen. When they do, strata councils and owners should be prepared to respond and minimize the impact to avoid further damage. 

A few simple steps board members and owners can take to avoid water damage:

• Consult a professional as soon as you notice that sewers are plugged, releasing unpleasant odours or that drains are backing up.
• Check the condition of all water seals and caulking in your kitchen and bathroom such as bathtub, faucets, showerhead, toilet, and dishwasher. Leaks around these fixtures can result in water damage to floors, walls and fixtures. Replace caulking seal as
• Check caulking around doors, windows, or other wall penetrations such as plumbing and air conditioning units. Replace if cracked.
• Know where emergency shut off valves are for major sources of water in your unit such as toilets and sinks. Immediate action will minimize the risk of water damage.
• Replace rubber hoses to washing machines every five years. Rubber hoses tend to deteriorate so it is recommended that newer reinforced and braided hoses are used as they are more durable. Reinforced braided hoses should be replaced every fifteen
• Inspect pipes and fixtures and if you see rust or corrosion call a professional.
• Ensure that hot water tanks are placed in a drain pan with provisions for the safety valve line to drain without causing damage. Turn off all the water at the main valve before you leave for a vacation. In cold weather, arrange for someone to check your unit to ensure the furnace hasn't shut off, which could cause the plumbing pipes to burst.
• Check eavestroughs for debris or blockage.
• Install a water detection system.

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Paul Murcutt 
Senior Vice President, Strategic Development, BFL Canada

Paul began his insurance career at BFL in 2003 and has worked in various leadership capacities with both the client service and broking teams. Today, Paul is the Senior Vice President of Strategic Operations in the Real Estate Division. He manages a large team that provides service and support to our real estate clients and leads BFL’s real estate strategic initiatives. Paul’s focus is on enhancing operations to achieve business growth. He is an active volunteer with many industry associations including the past president of the Canadian Condominium Institute and he is a Canadian Accredited Insurance Broker.